Grantmaking Foundations NAICS 813211
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Industry Summary
The 12,300 grantmaking foundations in the US award grants from trust funds to support charitable activities. Top areas of focus for giving include healthcare, education, human services, public affairs, arts and culture, environmental causes and animals, and international affairs.
Market Risk Challenges Investments
Fluctuations in interest rates, corporate earnings, and global financial markets can create a challenging investment environment for foundations.
Facing Public Scrutiny
Grantmaking foundations, particularly public foundations, face scrutiny from the public to provide transparency.
Recent Developments
May 2, 2025 - Trump Administration Proposal Would Cut $163 Billion In Federal Funding
- President Trump unveiled a budget plan with $163 billion in spending cuts to non-military programs. Grantmaking foundations may see increasing demand if federal funding in the form of grants is reduced. The agencies facing proposed reductions that would start on October 1 include the Environmental Protection Agency, the Energy Department, the Department of Education, the Department of Housing and Urban Development, and the Department of Health and Human Services, according to USA Today. The May 2 Trump administration proposal comes after courts have blocked many of those cuts, however.
- Charitable giving increased in 2024, according to the Growing Power of Giving: An Outlook report from Foundation Source CEO Joe Mrak. Grantmaking organizations like foundations and donor-advised funds experienced the strongest growth as wealthy donors continued to invest in the future of the non-profit sector. Foundation giving was up to 19% of overall giving, crossing into the $100 billion threshold for the second consecutive year.
- Nonprofit executive pay is increasing but inflation is cutting into those gains, according to Candid’s 2024 Nonprofit Compensation Report. Female executives continue to lag behind their male peers in both pay and representation at the highest levels, however. Median CEO compensation reached a new high of $132,077 in 2022, up from $118,541 in 2018. In nonprofits with budgets over $50 million, the median salary for male CEOs is $559,770, while the median salary for female CEOs is $430,640, a difference of $129,130. Female CEOs in this budget range now earn just 77 cents for every dollar earned by their male counterparts, a significant decline from 82 cents in 2012.
- Grantmaking foundation industry employment and average wages for nonsupervisory employees increased slightly during the first three months of 2025, according to the US Bureau of Labor Statistics. Grantmaking foundation industry sales are forecast to grow at a 5.85% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Foundations generate revenue from endowment returns and donations.
Industry Revenue
Grantmaking Foundations
Industry Structure
Industry size & Structure
The average grantmaking foundation operates out of a single location, employs about 10 workers, and generates $10.6 million annually.
- According to the US government, the grantmaking foundation industry consists of about 12,300 firms that employ 118,200 workers and generates $130.4 billion in revenue.
- The 238 US foundations surveyed in 2019 received over $9.4 billion in gifts, distributed nearly $8.4 billion to organizations and individuals, and managed over $94.1 billion in assets, according to Candid and the Columbus Survey.
- The top 50 organizations account for about 38% of industry revenue.
- Large organizations include the Bill and Melinda Gates Foundation, the Ford Foundation, and the Silicon Valley Community Foundation (SVCF).
- Most foundations have less than $50 million in assets.
Industry Forecast
Industry Forecast
Grantmaking Foundations Industry Growth
Source: Vertical IQ and Inforum
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